Chinese electric vehicle Juggernaut redorates the car market

The speed and scale of the Chinese revolution of electric cars surprised the world unexpectedly, and analysts say this tendency does not indicate a slowdown.

Tesla CEO Elon Musk was among those who underrated The potential of Chinese manufacturers EV.

In 2011, Musk rejected Baida, laughing at their products during Bloomberg interview. “Did you see their car?” said Musk. “I don’t think this is particularly attractive, the technology is not very strong. And the company in the company has pretty serious problems in their home lawn in China. I think their attention is, and it must be right to make sure they don’t die in China.”

Baid seems to have had the last word. The campaign was in In the vanguachnat Aggressive EV Push China, quickly expanding your household market and elimination Tesla as the world’s largest EV manufacturer in 2024.

Chinese startups such as Nio and Li Auto, as well as more created automakers, including Geely and Saic Motor, also lead manufacturers in this space. Catl battery giant Meanwhile, he was a key player in the nutrition of these vehicles.

Henner Len, Vice President of Competitive Intelligence, Market Analysis, Forecasting in S&P Global Mobility, said the EV China’s industry has become a “significant force” in the world’s restructuring.

“Just a couple of years ago, home car manufacturers in China were not considered as real competitors for the world’s created world.

“The last three years BYD has been growing about 1 (millions) units a year, wiping a smile in the faces of many products from farmers. And the competition is not only left in China,” he added.

In particular, in 2023 China Surpassed Japan as the largest car exporter in the world. Then this is the sale of domestic cars air ore Last year, 31.4 million units, as well as new EVS, account for about 41% of the total number of cars.

The growth of the Asian giant’s automobile sector was linked to subsidies, tax benefits and between 2009 and 2023, en According to estimates 230 billion dollars to develop EV. Analysts also referred to the lower labor costs, weaker yuan, innovative technological developments and a reliable chain of battery supplies among Beijing’s key preferences.

Climbing in China has since led to regulation in Western markets against the background charges Anti-component practice. Both the US and the European Union have fulfilled the Chinese EV duties to protect traditionally dominant US and European brands.

Michael Dan, CEO of Dunne Insights and a Chinese car market researcher, said he expects China to secure its dominance in car production, “just as it was done for solar panels.

By 2030, Dan told CNBC that it expects China to produce 36 million vehicles a year, or four of every 10 vehicles built on a worldwide scale. He also believes that Beijing will export approximately 9 million vehicles a year from just 1 million in 2020.

“Countries with smaller industrial industries such as Thailand, (South) Africa and Spain are already under pressure from Chinese imports,” CNBC email said.

In the UK, the first, Chinese sales EV has increased. Chinese car brands accounting Approximately 10% of all new cars sales are significantly compared to previous years.

Chinese Brands EV also quickly have done entry In Norway in EV. From the first MG car delivery to the northern country in January 2020, Chinese Brands EV continues to seize the market share by about 10%.

Rela Suskin, Morningstar stock analyst, has stated that the competitiveness of Chinese vehicles in many parts of the world is just beginning.

“It’s so busy in China that they should look elsewhere. And now we are at the moment when exports to the rest of the world are just beginning. We didn’t even start seeing it,” Suskin CNBC said by video call.

In this direction was the Chinese industry EV recently found During 2024, over 2024 spent more factories abroad than at home.

History for Chinese Players EV may have Not so pink However, on their domestic market. Analysts have reported CNBC that the branch shake is too long, and many startups are fighting to profit in an increasingly crowded field.

ACEA presents 16 large car manufacturers based in Europe, including similar Volkswagen. Bmw. Stellantis. Rena and volvo. He often urged the EU to take action to ensure the competitiveness of the block on the way to complete electrification.

To help European car manufacturers compete with Chinese EV Behemoth, De Vries Acea said the alignment of political conditions would have a significant difference.

“We must realize that some of these Earth alignment, speaking for the EU, can be implemented on our own terms. This is a regulatory framework, the cost of managing, suppressing innovations, not to unleash an entrepreneurial spirit,” said de Vx.

De Vries Acea added that while Europe will not be able to significantly affect China or the US, the bloc’s regulatory base may be adjusted “try to create the best environment for doing business in Europe.”

The European Commission, the EU executive hand, did not respond to the CNBC request about the comment.

– CNBC Evelyn Chen He contributed to this report.